Ex-Businessman Convicted of Fraud for Swindling Former Cellmate Out of NIS 1 Million

The Tel Aviv District Court convicted former businessman Nissim Djaladti of aggravated fraud for defrauding a man he met in prison out of NIS 1 million. Djaladti was also found guilty of money laundering, document forgery, using forged documents, false corporate record-keeping, and tax offenses. The crimes were committed during his imprisonment and immediately after his release on license.

Djaladti and the complainant met while serving sentences and developed a friendship and trust that led to business dealings. In 2020, Djaladti proposed an investment of NIS 1 million for a 2.5% stake in a shell company. The complainant initially transferred NIS 250,000 as a down payment to a lawyer's trust account, but Djaladti used it for a personal deposit required in a prior criminal proceeding without the complainant's knowledge or consent. In January 2021, the complainant transferred the remaining NIS 750,000 to the account of Y.P.A. Conditions Ltd., after Djaladti claimed this was necessary for tax purposes. Of this amount, NIS 728,000 was withdrawn in cash and given to Djaladti after a commission was deducted. Despite receiving the full NIS 1 million, Djaladti never transferred the shares or acted to do so. He later claimed the original deal was for NIS 1.8 million and demanded an additional NIS 800,000.

Judge Michal Agmon-Gonen ruled that the fraud conviction was based not only on the failure to transfer shares but also on Djaladti's personal use of the advance payment and his demand for more money after receiving the full sum. The judge noted the significant sum involved and that the fraud spanned three months, emphasizing that exploiting the trust between the two friends was a significant aggravating factor.

Israel Meged, owner of a financial services business, and his company Y.P.A. Conditions Ltd. were also convicted of forgery, using forged documents, false record-keeping, and money laundering. The court found that forged documents, including a power of attorney and client identification, were created in the complainant's name to facilitate the withdrawal of funds. Meged was convicted of executing the forgeries, while Djaladti was convicted as a joint perpetrator, having benefited from the funds obtained through these actions.

Djaladti was also convicted of a tax offense, as the NIS 1 million obtained through fraud was considered taxable income he attempted to conceal. However, he was acquitted of theft by an authorized person related to the share deal and of fraud in a separate NIS 100,000 investment deal in Axel Solutions shares due to reasonable doubt. He was also acquitted of certain money laundering charges. Djaladti's claim for a defense of justice was rejected. The case was handled by attorney Noam Uziyel from the Tax and Economic Crimes Prosecution.